Freddie Mac on Friday announced that Michael DeVito will retire as CEO in the first quarter of 2024 after less than three years in the job.
DeVito has communicated his intention to the board of directors, which will begin a search for a successor. “A smooth transition is anticipated,” the company said in a news release.
DeVito, a mortgage industry veteran, spent more than 23 years at Wells Fargo, where he served as executive vice president and head of home lending, responsible for all aspects of the company’s mortgage and home equity business. When he left, Kristy Fercho succeeded him at Wells Fargo, the country’s largest depository mortgage lender at that time.
DeVito joined Freddie Mac in June 2021, nearly six months after David Brickman stepped down. During the transition, Mark Grier was appointed interim CEO. At that time, there was an exodus of executive talent at Freddie Mac and Fannie Mae after it became apparent in 2020 that the GSEs wouldn’t be released from conservatorship.
“We are very saddened to hear of Michael’s departure, and the Board expresses its profound appreciation for his strong leadership and his many other contributions to Freddie Mac,” Sara Mathew, chair of Freddie Mac’s board of directors, said in a statement.
DeVito is departing a company that, in the second quarter of 2023, delivered a $2.9 billion net income, an increase of 20% year-over-year. Freddie Mac’s single-family mortgage portfolio reached $3.0 trillion in the period, up 3% year-over-year.
DeVito highlighted the mortgage market challenges in his comments on the enterprise’s performance in Q2 2023.
“The second quarter saw single-family home prices stabilize, influenced by strong demand, higher residential mortgage rates, and limited homes for sale,” DeVito said in a statement. “Renters continue to be cost burdened as rents rose in the face of softening multifamily property prices. Freddie Mac remained focused on its mission and delivered a solid quarter, helping 372,000 buy, refinance, or rent a home, the majority of them affordable to low- or moderate-income borrowers and renters.”
In its latest executive change, Freddie Mac announced in August that Peter Lillestolen will serve as vice president, production and sales of Targeted Affordable Housing (TAH) at Freddie Mac Multifamily.
“I am deeply grateful for his service and wish him well in his future endeavors,” Federal Housing Finance Agency Director Sandra Thompson said in a statement. “I will work closely with the Board in identifying a successor and ensuring a smooth transition to the new leadership.”
